That first nugget ignores that some people invest a lot of time and effort into their online identity via a social networking site. They aren't going to switch in a heartbeat.
I don't know how much true is what your saying, a month back I switched to Facebook from Orkut and I find lots of ppl doing the same. Facebook is a clear winner thats why I joined in and if something better comes, I won't mind switching again.
You're making my point. Facebook started to pass Orkut three years ago, and you didn't change until last month. It doesn't happen in a heartbeat. "Zero loyalty" just doesn't fit the facts.
Social App users don't switch by packing up all their belongings and moving them to another site, they just start up a new profile and build there instead.
If you think of it that way, it's not an either-or proposition. I can continue to have my profile on your site, but I won't venture there as much, you lose the ad revenue, and the downward spiral continues.
